Foundations in Hong Kong and Offshore Jurisdictions

Strategic Structures for Wealth Preservation, Legacy Planning and Global Impact

In today's complex financial landscape, high-net-worth individuals (HNWIs), family offices and international investors are increasingly turning to foundations in Hong Kong and offshore jurisdictions as powerful tools for wealth preservation, succession planning and philanthropic engagement. These structures offer a unique blend of legal protection, tax efficiency and operational flexibility—making them ideal for those seeking to safeguard assets, manage cross-border wealth and build enduring legacies.

At Zetland Fiduciary Group, we specialize in the formation and administration of foundations across multiple jurisdictions, including Hong Kong, the British Virgin Islands (BVI), Cayman Islands, Seychelles and the UAE. With over three decades of experience, our team delivers bespoke fiduciary solutions that are fully compliant, strategically structured and tailored to your long-term goals.

Why Foundations?

A foundation is a legal entity established to hold assets and manage them according to a defined purpose—be it charitable, private, or mixed. Unlike trusts, foundations are independent entities with no shareholders, offering greater control and permanence. They are particularly effective for:

  • Asset protection
  • Estate and succession planning
  • Philanthropic initiatives
  • Investment holding
  • Tax optimization

Whether structured as a Company Limited by Guarantee (CLG) in Hong Kong or a Private Interest Foundation in an offshore jurisdiction, foundations provide a flexible and secure platform for managing wealth across generations.

Foundations in Hong Kong

Hong Kong offers a robust legal and financial environment for establishing foundations. While the jurisdiction does not recognize foundations as a standalone legal form, similar structures can be created through:

  • Companies Limited by Guarantee (CLGs) under the Companies Ordinance (Cap. 622)
  • Charitable Trusts governed by the Trustee Ordinance (Cap. 29)
  • Societies under the Societies Ordinance (Cap. 151)

These entities can apply for tax exemption under Section 88 of the Inland Revenue Ordinance, provided they are established exclusively for charitable purposes such as:

  • Relief of poverty
  • Advancement of education
  • Advancement of religion
  • Other purposes beneficial to the Hong Kong community

To qualify, the foundation must:

  • Operate lawfully and for public benefit
  • Prohibit profit distribution to members or directors
  • Maintain audited financial statements and proper governance
  • Submit annual filings to the Companies Registry and Inland Revenue Department

Zetland assists clients in drafting Articles of Association, applying for Section 88 status and ensuring full compliance with Hong Kong's regulatory framework.

Offshore Foundations

Offshore jurisdictions offer additional flexibility and privacy for foundation structures. Popular locations include:

  • Panama
  • Liechtenstein
  • Seychelles
  • BVI
  • Cayman Islands
  • UAE (ADGM and DIFC)

These jurisdictions provide:

  • Tax neutrality: Most offshore foundations are exempt from local income, capital gains and inheritance taxes
  • Asset protection: Legal separation of assets from personal ownership shields them from creditors and litigation
  • Privacy: Confidentiality laws protect the identity of founders and beneficiaries
  • Succession planning: Foundations can bypass probate and ensure smooth intergenerational wealth transfer
  • Global reach: Offshore foundations are ideal for holding international investments, intellectual property and family businesses

Unlike trusts, offshore foundations are managed by a foundation council, not trustees, offering a more corporate-style governance model. They are particularly attractive to clients from civil law jurisdictions where trusts are not recognised.

Legal and Tax Advantages

Both Hong Kong and offshore foundations offer significant tax advantages in wealth planning:

  • Territorial taxation in Hong Kong: Only income sourced within Hong Kong is subject to profits tax; foreign-sourced income is generally exempt
  • No capital gains or inheritance tax: In most offshore jurisdictions, foundations are exempt from these taxes, making them ideal for estate planning
  • Tax-deductible donations: Recognized charitable foundations in Hong Kong allow donors to claim deductions on salaries or profits tax
  • Stamp duty exemptions: Charitable foundations may be exempt from stamp duty on property or stock transfers
  • Cross-border structuring: Foundations can be used to hold shares in offshore companies, reducing exposure to foreign tax regimes

Zetland's tax advisory team provides strategic guidance on international tax planning, ensuring your foundation is structured to maximize efficiency while remaining compliant with global standards.

Zetland's Foundation Services

Zetland Fiduciary Group offers a full suite of services for foundation formation and administration:

Formation & Structuring Icon Formation & Structuring

  • Jurisdictional analysis and strategic recommendations
  • Drafting of governing documents (Articles of Association, Foundation Charter)
  • Incorporation and registration with relevant authorities
  • Application for tax exemption status

Governance & Administration Icon Governance & Administration

  • Acting as foundation council members, trustees, or protectors
  • Providing registered office and company secretary services
  • Maintaining accounting records and preparing audited financial statements
  • Filing annual returns and compliance reports

Strategic Advisory Icon Strategic Advisory

  • Cross-border wealth structuring
  • Integration with family office and trust arrangements
  • Philanthropic planning and impact measurement
  • Succession planning and legacy preservation

Our team includes qualified lawyers, accountants and fiduciary professionals with deep expertise in Hong Kong and offshore jurisdictions. We operate independently, ensuring confidentiality, integrity and personalised service.

Tailored Solutions for UHNWIs and Family Offices

Zetland understands the unique needs of ultra-high-net-worth individuals and family offices. Our foundation solutions are designed to:

  • Preserve wealth across generations
  • Protect assets from legal and political risks
  • Support global philanthropic initiatives
  • Simplify investment management
  • Enhance privacy and control

We also offer multi-jurisdictional coordination, ensuring seamless integration between Hong Kong, UAE and other offshore structures.

Why Zetland?

Established in 1987 and headquartered in Hong Kong, Zetland Fiduciary Group is a licensed trust and company service provider with offices in Shanghai, Singapore, London and the UAE. We combine global reach with local expertise, delivering discreet, cost-effective and compliant fiduciary solutions.

Our foundation services reflect our commitment to excellence, strategic thinking and client-centric values. Whether you're launching a charitable initiative or building a private legacy structure, Zetland is your trusted partner in navigating the complexities of international wealth planning.

Get Started

Foundations are more than financial tools—they are vehicles for impact, legacy and long-term security. Contact Zetland Fiduciary Group today to explore how a foundation in Hong Kong or an offshore jurisdiction can support your goals.